Tuesday, September 06, 2005

Condo Flip Flop

Over the weekend I decided not to go for the condo. I was basically talked out of it by some friends and relatives. So I called today to get my $2,500 deposit back. The sales manager told me that it was not a problem. I knew demand was very strong since 60 units were reserved in the first week alone and this is only phase 1. She told me to really think about it some more since I still haven't received the condo docs. I have ten days to decide after receiving the condo docs. I was surprised to find out that comparable units have already increased in value. The unit I reserved was priced at $369,000 and now comparable units with a slightly less ideal location are being priced at ~ $450,000 due to the strong demand. That's a ~20% increase in value. Now with the price appreciation, everything changes.

5 Comments:

At September 08, 2005, Blogger mmb said...

Flip flop is right. I had to smile when I read that post. So you went from deciding to review papers to thinking it's a bad idea to thinking it's a good idea. :) .. Maybe review the papers and see if it makes sense for you at this point in your life. Whatever decision you make, you are the one who'll have to live with it. Unless you are buying to sell (but then where will you live?) short term gains or losses won't affect you personally. Sure, it may make your net worth go up (or down) on paper but it'll only be on paper. Good luck no matter what you decide.

 
At September 08, 2005, Anonymous NYC Money said...

This is really tough decision. When I first bought my place I was really worried. Would the price continue to increase, would I stay long enough to justify the cost. I've been here about a year. My place was $356, and I bought a down of $100k. It was one of the best decisions I have ever made. I don't know anyone that ever regrets owning their own home. Good luck with your decision

 
At September 08, 2005, Blogger Money Turtle said...

I'm still waiting for the condo docs. Unless I find something surprising in the condo docs, I'm going to go for it. Unfortunately, the money I need for the downpayment is tied up in stocks and I have very little in cash. Now I have to find the most tax efficient method to raise some cash.

 
At September 25, 2005, Blogger Caitlin said...

Those units made me drool so I understand the demand...I even started fantasizing about a move across town!

Those prices aren't too bad for Boston, but I am having trouble continuing to justify my current $1700+ monthly housing costs to stay in Boston (given my other financial goals) let alone paying more.

but..."oooh pretty!" for sure. Looks like a great place to live :)

 
At September 25, 2005, Blogger Money Turtle said...

I'll end up paying ~$430 sq ft. for this condo. It's not bad considering it's new construction. I'm going to have to cut way back on my investment contributions. That's the down side to this purchase.

 

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